New Delhi : Weeks after the new government deferred a decision on revising natural gas prices, the pre- Budget Economic Survey called for market-linked pricing to boost domestic oil and gas exploration, and production.
“In the field of natural resources where there is global trading, appropriate incentives for exploration and extraction in India are obtained when there is pricing parity with the world price excluding transport costs or taxes,” the Economic Sursaid. It calls for pricing domestic natural gas at fob (free-on-board) rate for liquefied natural gas (LNG) imported into India by ships. Private producers like Reliance Industries too are seeking a rate equivalent to the price at which gas in its liquid form is imported into India on long-term contracts.
They feel the current gas price of $4.2 per million British thermal unit, which is one-third of the price at which India imports long term LNG from Qatar, is not enough to produce from newer fields in the deep sea.